China: a power and an incontestable partner in the world economic stage

by yadav kant silwal

Today we are celebrating the 45th anniversary of the establishment of diplomatic relations between Nepal and China. On 1 August 1955, the two countries entered in to a new relationship based on norms that truly reflected the wishes of their respective peoples as also the realities of inter-state relations of the later half of the twentieth century. Different political systems notwithstanding, Nepal and China moved forward with a vision that placed the centrality of good neighborliness at the core of all the activities governing their relations. An objective assessment of this bilateral ties in the last 45 years testify eloquently to the very high degree of understanding, cooperation, friendship and goodwill between the two peoples and their leadership. Perhaps very few neighbors in the world have such an uninterruptedly satisfying and smooth overall relationship whose fundamentals continue to be scrupulously observed.

Nepal shares a boundary of a little more than fourteen hundred kilometers with China. Despite the high Himalayas forming almost all the border, the degree of interaction and the multifaceted exchanges between the two have been extensive. This has contributed enormously to the rich cultural and artistic treasure of Nepal as also to the inter-religious harmony prevailing here, thus enabling the Nepalese to occupy a unique place in the Asian heartland. In other words, Nepal encompasses in its ethos a blend of two civilizations on both the sides of the mighty Himalayas that thrived across the whole expanse of Asia and is still sustaining the richness and diversity of the Asian continent. In this process, Nepal has both been a giver and taker.

Huen Hsiang, Fa-hien, Bhrikuti, Buddhabhadra are some of the few household names that have left a permanent imprint in Nepal-China relations. Lumbini, the birthplace of Lord Buddha has historically created an abiding interest of not only the Asian countries but the entire global community as a fountain of peace, compassion and tolerance.

Being at the cross-point of diverse cultures and civilizations interspersed with each other, it is thoroughly relevant that Nepal maintains the best relations primarily with her neighbors China and India as well as the larger Asian continent and the global community. It was Prithivi Narayan Shah who articulated for the first time a policy of good neighborliness in his famous yam between two stones dictum. It was appropriate that a unified Nepal under his leadership and the subsequent regimes whatever their political hues have given a continuity to the policy.

In this context, Nepal as an independent and sovereign country also interacted with countries of Europe in the nineteenth and twentieth century. Jung Bahadur and Chandra Shamsher visited Europe in order to acquaint themselves with the realities of that period and adjusted Nepal’s policy accordingly. Nepal took part in both World Wars. All these events essentially reflect one gnawing truth, which is that Nepal had to adopt different approaches in the various difficult phases of her history in order to sustain her sovereign independent status.

Coming to the later half of the 20th century, the changing realities in the world and in the neighborhood brought about new dynamics in the foreign policy of Nepal. As member of the U.N in strict adherence to the objectives and the principles of the world body, it was natural for Nepal to play a corresponding role by being steadfast and fearless on many a outstanding issues and contributing in its own way to the peace keeping efforts of the United Nations. In the same vein, the nature and the degree of interaction with neighbors was bound to be different but closer. At the same time deep at the heart of our foreign policy perspective was the central fact that a stable and prosperous China and a stable and prosperous India are in the fundamental interest of Nepal and of course in the larger interest of east Asia and South Asia respectively.

In this respect one has also to reckon with today’s reality in which regional co-operation plays a decisive role as a building block for globalization. This has become an inevitable trend around the globe. Closer home we see China becoming a member of APEC, developing close relation with the ASEAN and as a member of Shanghai five. An idea is already floating about regional co-operation between China, Pakistan and Central Asia Republics and another such venture between China, India, Myanmar, Bangladesh, Nepal and Bhutan as part of an agenda for the 21 st century.

Similarly India is already a member of South Asian Association for Regional Cooperation-SAARC, a member of the Indian Ocean community and a member of BIMSTEC-B’desh, India, Myanmar, Thailand, Sri Lanka and a dialogue partner of ASEAN.

Nepal is a member of SAARC and together with its fellow members, looks upon the organization as a vehicle to promote an all round progress in future and the best guarantor of a climate of co-operation, goodwill and understanding in the South Asian region. No matter what kind of occasional setbacks occur, the vision set beyond 2000 and steps that are already in place to implement the vision can not be reversed. The inter-regional dialogue between SAARC on the one hand and the ECO, ASEAN and EU have already been initiated.

In this context, it will be legitimate for Nepal as indeed for other members of SAARC to give a practical shape to the idea of promoting a meaningful dialogue between SAARC and China as already envisioned in its agenda. Two big markets, skilled manpower, enormous resources and vast potentialities, there is a tremendous scope for an equitable and beneficial co-operation.

Mountains, big rivers and Eco-systems connect the two regions China and South Asia. In this background one can not discount even the idea of forming a growth quadrangle including the Tibetan region of China, Nepal, Bhutan, West Bengal, Northeast India and Bangladesh. This may look a little bit far-fetched at the moment. But, let us not forget that Himalayan passes have always worked as trade and transit routes for China and the countries of South Asia. At one time, both way border trade along the Himalayas were extensive, sustaining the local economy as well as extending beyond the border regions down to the plains and beyond the plateau to the north. There is no reason why we can not conceive of a future, which holds so much of promise in terms of cooperation in a variety of areas.

Lastly, let me present my view of Nepal-China relation in the bilateral context. It is time, we move beyond taking for granted the satisfactory state of relations that the two countries have been enjoying in the last 45 years. Let us not forget that the ground realities are changing fast and it is crucial we develop a new perspective without loosing more time.

The first quarter of this century will see China emerge as a major power and an incontestable partner in the world economic stage.

Already in the past twenty-five years or so China has lifted millions of men, women and children out of poverty, brought about the economic upliftment of her people and achieved economic progress on a scale and time frame unparalleled in history. With this continuing phenomenon let me repeat that it is a matter of time before China reached the status of a full fledged developed country status in the front rank.

On the other hand, Nepal, a close neighbor of China already least developed and at the lowest ladder in terms of development index faces a daunting challenge of how to bring about economic development in the face of enormous constraints.

It will be timely if the two neighbors engage in all seriousness in the task of preparing a road-map of Nepal-China bilateral co-operation in trade, investment, tourism, cultural exchanges and so on with a pledge to implement them within a definitive time frame. The onus of undertaking such an initiative in all seriousness lies on Nepal in particular. It is therefore essential that the government, the private sector, the civic societies and all our compatriots in Nepal join hands in creating an appropriate environment to give a new and dynamic shape to Nepal-China co-operation.

There will be constraints of one kind or the other but they have got to be overcome with determination from our side. If we miss this opportunity to initiate a new and sustained policy dialogue with China with a central focus on institutionalizing long term development co-operation, we may unwittingly drift into a situation where we might become victim of our own inaction. A poor Nepal and an affluent China will live not as good neighbors but will live like neighbors far alienated with each other with all the implications that it might create.

As I said earlier, Nepal in the coming years and decades will have to move in to two tracks in its relations and interaction with China with more vigor and imagination. One is the continuing bilateral track and the other is a regional track and letting the two intersperse with each other wherever possible. That will be in the fundamental interest of Nepal as well as in the larger interest of both South Asia and China.

China and Nepal have always understood, ‘trusted’ and supported each other

Mr. zeng xuyong, Chinese ambassador

On August 1, 1955, China and Nepal formally established diplomatic relations, which opened a new chapter of bilateral relations. In the past 45 years, our traditional friendship and cooperation have continuously developed on the basis of the five principles of peaceful co-existence. The two countries maintained exchanges of high level visits. Zhou Enlai, Dend Xiaoping, Jiang Zemin and other state leaders of China have visited Nepal, and Nepalese leaders including H.M.King Birendra and almost successive prime ministers have also visited China on many occasions. These visits have made very important contributions to promoting overall development of bilateral relations. During president Jiang Zemin’s Nepal’s visit in 1996, the leaders of the two countries jointly decided to establish generation-to-generation good neighborly partnership, which pointed out the direction of the 21 st century oriented China-Nepal relations.

In the field of economy and trade, our two countries carried out fruitful economic and technological cooperation, contributing greatly to Nepal’s social and economic development, especially in its infrastructure sector. The bilateral trade volume has been constantly increasing. Similarly, in recent years Chinese companies have constantly expanded their participation in contract projects, investment and joint ventures in Nepal.

China and Nepal enjoy good cooperation in the fields of culture, education, religion, arts and sports. In addition, friendly contacts have been maintained between parliaments and political parties of the two countries. Contacts between sister-cities have been gradually growing, and exchanges between NGOs have become more and more active. All these developments have further deepened the mutual understandings and friendship of the two peoples.

The developments in the international situation show that the world at the turn of the century is far from tranquil. Hegemonism and power politics have manifested themselves in new ways. There are growing trends towards consolidating the military alliance and escalating the arms race. The tendency to use or threaten to use force is clearly on the rise. We believe that the plan to establish National Missile Defense System violates the Anti-Ballistic Missile Treaty, and the nature of NMD is to seek unilateral military and security advantages, which will inevitably trigger a new arms race and undermine international strategic stability and security.

In the international economic arena, the trend of globalization is gaining speed. While the world economy grows, the gap between the rich and poor is further widening, and the disparity between North and South is becoming increasingly striking. As a result, the developing countries are confronted with even stiffer challenges in their economic development.

However, the above changes have not altered the mega-trend, that is, the international situation, as a whole is moving towards relaxation. The maintenance of the norms governing international relations such as sovereign equality, non-interference in each other’s internal affairs, and the establishment of a just and reasonable new international political and economic order are the common aspirations of the international community and its objectives to work for. The historical mega-trend towards multi-polarity is not to be reversed. All schemes to establish a "single-polar world"’ or monopolize the international affairs are doomed to failure.

In spite of international vicissitudes, China adheres to the independent foreign policy of peace, upholding justice, opposing hegemony and working for peace in international affairs. We adhere to the five principles of peaceful co-existence and strengthen solidarity and cooperation with developing countries. To strengthen the good neighborly and friendly relations with its neighboring countries including Nepal is a basic state policy of the Chinese government. In the past several decades, China and Nepal have always understood, trusted and supported each other, and the China-Nepal friendship has taken roots in the hearts of the two peoples. Practice has proved that the good neighborly friendship existing between China and Nepal not only conforms with the fundamental interests and aspirations of the two peoples, but also conduces to the maintenance of peace and stability in the region. Whatever happens in the international and regional situation, China will consistently work for developing generation-to-generation good neighborly partnership with Nepal.

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